The New York Times reports that our baby boomer president-elect will overhaul “entitlement” programs like Social Security and Medicaid, as his fellow boomers retire over the next couple of decades.
People over the age of 65 will account for 20 percent of the American population in the next 20 years, as opposed to 12 percent at present. The focus of insurers, health care providers, manufacturers, retailers, marketing companies, politicians, etc., will shift more heavily toward this segment of society. The generation of Americans born between 1946 and 1964 has heavily influenced the culture from birth. The oldest members will begin retiring in the next few years; the surging number of retirees will result in increased health care spending.
The U.S. faces a budget deficit of $1.2 trillion this year. President-elect Barack Obama’s plans to overhaul Social Security and Medicaid supposedly is an attempt to tackle the deficit. In his speech on Wednesday, he didn’t lay out specific plans.